Starbucks to cut 1,100 jobs, streamline menu to boost sales

Starbucks is set to lay off 1,100 corporate employees as part of a major restructuring effort under CEO Brian Niccol’s "Back to Starbucks" turnaround plan. The move comes as the coffee chain struggles with declining sales and aims to improve operational efficiency and customer experience.

In a companywide message on Monday, Niccol stated that Starbucks is "simplifying our structure, removing layers and duplication, and creating smaller, more nimble teams." The layoffs will affect corporate and administrative roles but will not impact in-store baristas or other frontline retail employees.

The job cuts include the elimination of several hundred unfilled positions, and affected employees will be notified on Tuesday. Starbucks currently employs around 211,000 workers in the US and 150,000 internationally, with 16,000 in corporate and administrative positions.

Niccol, who joined Starbucks in September 2024 after leading a successful turnaround at Chipotle Mexican Grill, has been implementing strategies to revive the brand. Since he took the helm, Starbucks shares have rebounded by over 22 percent, following a 40 percent decline from its 2021 high due to weakening demand in the US and China.

Menu overhaul to speed up service

In addition to the layoffs, Starbucks is simplifying its menu by removing 30 percent of its beverage and food items by the end of the fiscal year. The company aims to streamline operations and reduce wait times by eliminating lower-demand and more complex-to-make drinks.

The following beverages will be discontinued starting 4 March:

• Iced Matcha Lemonade

• Espresso Frappuccino

• Caffe Vanilla Frappuccino

• Java Chip Frappuccino

• White Chocolate Mocha Frappuccino

• Chai Creme Frappuccino

• Caramel Ribbon Crunch Creme Frappuccino

• Double Chocolaty Chip Creme Frappuccino

• Chocolate Cookie Crumble Creme Frappuccino

• White Chocolate Creme Frappuccino

• White Hot Chocolate

• Royal English Breakfast Latte

• Honey Almondmilk Flat White

Niccol emphasized that these changes will help Starbucks focus on core offerings that customers love while improving service efficiency.

Despite the job cuts, Starbucks will continue to hire for key positions that align with its new support structure. Niccol remains optimistic about the company’s growth and is committed to restoring the personal touches that made the brand popular, such as barista-written notes for customers.

With these strategic changes, Starbucks aims to regain momentum in the competitive coffee industry, ensuring a more efficient and customer-focused experience moving forward.